When a U.S. company shifts some of its production to Mexico, it is engaging in

A) involuntary exchange. B) outsourcing.
C) insourcing. D) self-sufficiency.


B

Economics

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What factors are most important for determining exchange rate fluctuations in the long run?

A) preferences for domestic and foreign goods across countries B) relative rates of productivity growth across countries C) relative price levels across countries D) All of the above are correct.

Economics

There is a practice in the stock market known as "short selling" whereby an individual will borrow stock from someone, turn around and sell it and then buy it back when it's price has fallen in order to return the stock back to the lender

What expectation does this short seller have about the price of this company's stock? How can he expect to make money at this practice? What could go wrong that might cost him money?

Economics

The issue of fairness in taxes is a very controversial one. Compare and contrast both the ability-to-pay principle with that of the benefits received principle

What will be an ideal response?

Economics

Developing countries are starting to converge with developed countries in the long run in what respect?

a. Growth rate b. Income inequality c. Population d. Per capita income

Economics